EU Updates - January
New Amendments to the Corporate Sustainability Reporting Directive
On 15th December, the European Parliament’s Committee on Legal Affairs (JURI) amended the proposal for a Corporate Sustainability Reporting Directive (CSRD).
Here is an overview of the key changes made:
Focus on all companies operating in high-risk sectors and high-risk areas, due to their social, political, and environmental impact. These companies would be required to disclose non-financial information regardless of their size and presence in a listed market. SMEs included.
No more references to due diligence. The text of the CSRD Directive will not contain any reference to due diligence, as this will be covered in the Sustainable Corporate Governance Proposal, which will be published in February 2022.
Proposal of an independent third-part body to draft the corporate sustainability reporting standards. The role of the European Financial Reporting Advisory Group (EFRAG) has been criticised due to the existence of a membership fee, which could undermine the participation of some categories of stakeholders.
The CSRD proposal aims at closing the existing information gaps on the way companies operate and manage social and environmental challenges. By defining corporate sustainability reporting standards, the directive would help investors, civil society organisations, consumers, policy makers and other stakeholders to evaluate the non-financial performance of companies, encouraging them to develop a responsible approach to business.
The text amends the Non-Financial Reporting Directive (NFRD), expanding the scope of the legislation to include all large companies and all those listed on a regulated market.
For more information:
EU Commission Opens Public Consultation for a European Right to Repair
On 11 January, the European Commission opened a public consultation on the initiative “Sustainable consumption of goods – promoting repair and reuse”. The feedback will will be taken into account to further develop and fine-tune the legislative proposal on the right to repair, under the umbrella of the European Green Deal and the Circular Economy Action Plan.
The initiative, which is expected to be published in Q3 2022, will advance the right to access repair at a reasonable price. In line with the Consumer Sales and Guarantees Directive and the Sales of Goods Directive, consumers currently have a two-year guarantee period to ask for their products to be repaired. The implementation of a new right to repair will likely change the timing and modalities for repair.
Stakeholders have time until 5 April 2022 to submit their feedback.
For more information:
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